We are the largest online professional physician platform in China in terms of registered physician users as of December 31, 2020, according to the Frost & Sullivan Report. We have focused on using technology to support physicians’ clinical decision making for over 20 years, and our self-developed Medlive (醫脈通) platform is widely recognized by physicians in China as the most popular professional medical platform. As of December 31, 2020, our Medlive platform, available through our website, desktop application and mobile application, had approximately 3.5 million registered users, around 2.4 million of whom were licensed physicians, representing approximately 58% of all licensed physicians in China as of the same date, according to the Frost & Sullivan Report. In the fourth quarter of 2020, the average MAUs on our platform exceeded 1.0 million. In the same period, the average monthly views of articles and videos by registered users on our platform were over 134 million. Articles and videos on our platform include, among others, clinical guides and guidelines, research articles, drug references, clinical developments, as well as customized content.
Leveraging our large number of physicians users and their high level of engagement, our Medlive platform allows platform participants to gather, learn and connect. Our platform participants include physicians, pharmaceutical and medical device companies and patients. We extensively leverage our proprietary technology, content generation capabilities and our understanding of medical information science to deliver the most relevant and valuable information efficiently to each group of platform participants.
Physicians play an essential role in the value chain of healthcare market and are the key decision makers in prescribing healthcare products. As more physicians join our platform, they are able to share knowledge with, and seek support from, a larger number of professional peers. Other platform participants, such as pharmaceutical and medical device companies who are the suppliers of healthcare products, and patients who are the end-users of the healthcare products, are attracted to our platform due to our high quality and growing physician user base.
‧ Solutions for Pharmaceutical and Medical Device Companies. We primarily provide digital healthcare marketing services to pharmaceutical and medical device companies.We ranked first among physician platform-based digital healthcare marketing service providers in China in terms of revenue in 2020, with a 21.4% market share, according to the Frost & Sullivan Report. We also offer a highly scalable digital platform with user analytics to help pharmaceutical and medical device companies improve their efficiency and effectiveness in product development and commercialization. We generate revenue primarily from fees paid by our healthcare customers for our digital detailing, digital marketing consulting and digital content creation services.
We provide patient recruitment services for clinical trials that enable pharmaceutical and medical device companies to quickly meet planned enrollment targets. We offer RWS support solutions that enable pharmaceutical and medical device companies to collect and analyze the clinical effects of their products in the real-world environment. We generate revenue primarily from fees paid by our healthcare customers for patient recruitment service, RWS support solutions and related application software development service.
‧ Solutions for Physicians. Our platform provides a setting for physicians to learn about and discuss the latest research, products and technologies available in the healthcare market and clinical best practices. Our platform offerings are underpinned by the professional medical content curated by our own content team, which included 62 full-time medical experts and 30 full-time digital marketing content designers as of the Latest Practicable Date. For example, our Clinical Guides (臨床指南) solution aggregates the latest clinical references and our Clinical Drug Reference (用藥參考) solution offers comprehensive information on prescription drugs, providing efficient clinical decision-making support to physicians at their fingertips. As of the Latest Practicable Date, our platform offered over 12,000 clinical guides published by medical authorities in China and overseas, prescribing information for over 30,000 prescription drugs and over 100,000 guides on drug interactions and incompatibility. Our platform is now well-recognized as the authoritative source for medical information in China. We generate revenue primarily from annual membership fees charged for our Clinical Guides (臨床指南), Reference Aid for Medicine (醫學文獻王), Clinical Drug Reference (用藥參考) and Medical Dictionary (全醫藥學大詞典) solutions.
‧ Solutions for Patients. We launched our Internet hospital in 2021, which represents a major step forward in the application of our intelligent patient management solutions, which entail comprehensive chronic disease management services. Patients can conveniently receive medical advice and prescriptions from physicians who participate in our Internet hospital. We also offer AI-enabled, automated patient management services through our Internet hospital to educate patients about their conditions and treatment regimens, provide patients with customized chronic disease management suggestions and keep track of their medication-taking and refills. Such services are designed to increase patient adherence to prescribed medication regimens, thereby improving the effectiveness of treatments. We started to generate revenue from commissions on fees paid by patients for online consultation services and prescription services on our Internet hospital in 2021. We also generate revenue from fees paid by non-profit organizations with medical focus and pharmaceutical companies for provision of patient education services, which leverage our AI technology and medical knowledge graph, to patients and non-profit organizations.
‧ Solutions for Hospitals. Hospitals need technology solutions to improve the efficiency of clinical trials. We offer hospitals with electronic data capture (“EDC”) system for intelligent and automated data collection and management. 156 hospitals used our EDC solutions in 2020. We generate revenue primarily from fees paid by hospitals for EDC solutions.
Our comprehensive solution offerings also allow us to serve other stakeholders of the healthcare industry, such as medical researchers, non-profit organizations, CROs and medical associations. Because of our strong brand recognition in the medical community, we are well-positioned to attract even more participants, such as insurance companies, to our platform.
We delivered strong financial performance during the Track Record Period from operating our professional physician platform. Our revenue increased from RMB83.5 million in 2018 to RMB121.6 million in 2019 and further increased to RMB213.5 million in 2020, at a CAGR of 59.9% from 2018 to 2020. Our net profit increased from RMB14.2 million in 2018 to RMB31.3 million in 2019 and further increased to RMB85.2 million in 2020, at a CAGR of 145.0% from 2018 to 2020. We started to generate revenue from operating Internet hospital in 2021.
Our revenue from pharmaceutical and medical device companies increased from RMB58.8 million in 2018 to RMB90.5 million in 2019 and further increased to RMB158.6 million in 2020, accounting for 70.5%, 74.4% and 74.3% of our total revenue for the respective years. The significant increase in revenue from pharmaceutical and medical device companies during the Track Record Period was primarily attributable to continued expansion of our healthcare customer base and increasing number of healthcare products marketed using our precision marketing solutions and corporate solutions. Revenue from other customers increased from RMB24.7 million in 2018 to RMB31.1 million in 2019 and further increased to RMB54.9 million in 2020, accounting for 29.5%, 25.6% and 25.7% of our total revenues for the respective years.
In 2018, 2019 and 2020, the aggregate revenue from our top five customers, all of which are multi-national healthcare or pharmaceutical companies, were RMB34.4 million, RMB48.3 million and RMB84.7 million, respectively, accounting for 41.2%, 39.7% and 39.7% of our total revenue for the respective years. In 2018, 2019 and 2020, purchases from our five largest suppliers in aggregate were RMB8.7 million, RMB8.7 million and RMB17.0 million, respectively, accounting for 31.9%, 23.3%, and 28.7% of our total purchases for the respective years. Our five largest suppliers include M3 Group, Jinye Tiansheng, as well as providers of information technology services, telecommunication services, product procurement services and property rental services.
Source: Medlive (02192) Prospectus (IPO Date : 2021/06/30) |